Navigator Holdings Ltd. · NYSE:NVGS
Navigator — Stifel Presentation August 2017
28 slides from Navigator's conference presentation, August 2017
Slide 1: Stifel Presentation August 2017
Stifel Presentation August 2017 Navigator Holdings Ltd. “NVGS”
Slide 2: Forward-looking statements
This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of applicable federal securities laws. Most forward-looking statements contain words that identify them as forward-looking, such as “may”, “plan”, “seek”, “will”, “expect”, “intend”
Slide 3: Table of Contents
TABLE OF CONTENTS NAVIGATOR GAS MARKET FINANCIAL INFORMATION APPENDIX 3
Slide 4: Navigator at a Glance
• NAVIGATOR AT A GLANCE Enabling opportunities in Energy, Plastics and Fertiliser markets Global Trade Diversification *Europe 31% Africa & MEG 25% Asia 22% SAM 12% NAM 10% Leading Handysize Market Share ¦ Cargo Diversification Growing Together with Our Customers Building for future markets Other 27
Slide 5: Gas Carrier Markets: More to It Than LPG
GAS CARRIER MARKETS: MORE TO IT THAN LPG Global Seaborne Transportation Producer of LPG Producer of Ethylene Producer of Fertilizers. 4x Ice Class Semi- 1x Large Ethane capable vessel on 1 x New generation Midsize vessel Refrigerated vessels on 5-10 10 year contract on 10 year contract year contract
Slide 6: Gas Carrier Fleet Overview
GAS CARRIER FLEET OVERVIEW 261 30 12% 24 - - Fully-Refrigerated 92 10 11% Ethylene / Ethane 13* 1 8% Fully-Refrigerated 26 - - Semi-Refrigerated 59 5 8% Ethylene 24 4 17% Semi-Refrigerated / 336 12 4% Pressure Semi-Refrigerated / Pressure 633 4 1% * 11 of the 13 MGC’s are on long term time charters
Slide 7: Industry Overview: Three Main Classes of Gas Ships
INDUSTRY OVERVIEW: THREE MAIN CLASSES OF GAS SHIPS 7
Slide 8: We Are Actively Implementing Changes to Our Cargo Mix
WE ARE ACTIVELY IMPLEMENTING CHANGES TO OUR CARGO MIX Total Earning Days 2015 to 2017 3,000 Days 2,500 43% …and increasing Petchems Spot 2,000 Petchems TC LPG Spot 1,500 1,000 LPG Time Charter Earning Days 1H2016 1H2017 Change 500 Petrochemicals 1,219 2,374 + 95% LPG 3,104 2,978 - 4% Ammonia 342 336
Slide 9: Our Global Footprint in Petrochemicals Is Changing
OUR GLOBAL FOOTPRINT IN PETROCHEMICALS IS CHANGING Increasing voyage Long term structural approach to Shift from Middle East Larger parcel-sizes duration contracts to U.S. focus 9
Slide 10: Table of Contents
TABLE OF CONTENTS BACKGROUND NAVIGATOR GAS MARKET FINANCIAL INFORMATION APPENDIX 10
Slide 11: Handysize Gas Fleet Overview
HANDYSIZE GAS FLEET OVERVIEW Market Share 15,000 – 40,000cbm Ethylene Vessels : Available capacity from 2018 Owner Existing On Total Ethylene Fleet Order Navigator Gas 33 - 33 [10] Ultragas 9 - 9 - 37% 51% Petredec 6 2 8 [4] Others Others Solvang 4 4 8 [8] Naftomar 7 - 7 - Harpain 5 - 5 [4] Handysiz
Slide 12: U.S. Ethylene Focus: Competitive Fundamentals
U.S. ETHYLENE FOCUS: COMPETITIVE FUNDAMENTALS US Ethylene expansions 2017 – 2022 U.S. Ethylene production vs domestic demand 2017 2018 2019 2020-22 50 Mts Millions Oxy 1,200 45 Westlake Calvert 100 40 35 +50% Dow Freeport Formosa 3,300 300 30 CP Chem 3,300 Exxon Baytown 3,300 25 Indorama 800 20 Form
Slide 13: Enterprise & Navigator Ethylene Terminal
ENTERPRISE & NAVIGATOR ETHYLENE TERMINAL Source: 13
Slide 14: Enterprise & Navigator Ethylene Terminal: China Map
ENTERPRISE & NAVIGATOR ETHYLENE TERMINAL China Map 14
Slide 15: Table of Contents
TABLE OF CONTENTS BACKGROUND NAVIGATOR GAS MARKET FINANCIAL INFORMATION APPENDIX 15
Slide 16: 2017 6M Highlights
2017 6M HIGHLIGHTS 2017 6M HIGHLIGHTS Gross Revenue EBITDA NET INCOME US$151.7m US$64.1m US$5.0m Vessels owned Avg daily charter rate Fleet Utilization 36 US$21,657 89.2% 16
Slide 17: Gas Carrier Charter Rates
GAS CARRIER CHARTER RATES 78,000cbm - VLGC Navigator’s Daily TC Rates (US$) 22,000cbm - Semi-ref - Handy 29.7 30.0 30.3 30 28.6 28.9 28.3 $2,000 27.4 22,000cbm - Fully-ref - Handy 25.6 25.5 23.6 24.1 8,250cbm - Small 21.7 $1,800 20 Average 2006 -2016 US$26,969 per day $1,600 10 $1,400 0 2006 2007 20
Slide 18: Committed Revenue
COMMITTED REVENUE Total US$ 622.1M in committed revenue 2017-2020 2020+ Committed Revenue EBITDA Average TCE Committed Revenue US$419.72M US$288.8M US$25,616 US$202.4M Committed revenue for the Navigator fleet Remaining 6 2018 2019 2020 Total months 2017 Available days 8,585 13,716 13,630 13,737 49,
Slide 19: Daily Operating Expenses
DAILY OPERATING EXPENSES Navigator’s Daily Operating Expenses Analysis of Operating Expenses (US$) 9,000 1.0% 8,115 8,068 7,916 7,925 6.7% 8,000 7,779 7,632 7,657 7,415 7,316 7,102 5.4% 7,000 5.4% 6,000 1.7% 5,000 53.3% 4,000 14.0% 3,000 8.4% 2,000 1,000 Crew Lubes & Stores Repairs 0 Upgrade Insuran
Slide 20: Break Even Analysis
BREAK EVEN ANALYSIS Comments Break even and TCE rates Operating expenses Brokerage commission G&A For the six months ended 30th of June 2017, the Drydocking costs Interest expenses Total Company had a cash break even rate of US$ 9,900 per day per vessel, before interest expenses USD/d Average TCE ra
Slide 21: Strong Balance Sheet & Banking Relationships
STRONG BALANCE SHEET & BANKING RELATIONSHIPS (US$'M) Current Lenders As of June 30, 2017 Actual Cash 53.8 Debt Secured term loan facilities 704.4 Unsecured Notes 100.0 Total Debt 804.4 Total Shareholders' equity 962.4 Total capitalization 1,766.8 Debt / Capitalization 45.5% 21
Slide 22: Indebtedness
INDEBTEDNESS Lending Facilities Outstanding - end of year (US$’M) Current Facilities 851 ▪ Senior Unsecured Notes maturing in February 2021. 137 759 ▪ US$278 million Secured Term Loan expiring 689 112 between June 2020 and April 2022 129 96 100 560 ▪ US$290 million Secured Term Loan expiring 83 from
Slide 23: Finance: Balance Sheet
FINANCE: BALANCE SHEET (US$'M) 2011 2012 2013 2014 2015 2016 6 Months 2017 Assets Cash and cash equivalents 26.7 150.9 194.7 62.5 87.8 57.3 53.8 Other current assets 11.2 20.3 31.9 22.0 37.2 36.5 44.9 Vessels in operation (net) 455.3 586.7 1,026.3 1,145.1 1,264.4 1,480.4 1,638.2 Vessels under constr
Slide 24: Finance: Income Statement
FINANCE: INCOME STATEMENT (US$'M) 2012 2013 2014 2015 2016 6 Months 2017 Net operating revenue 118.9 189.0 259.9 281.5 251.9 123.2 Operating expenses: Address and brokerage commissions 4.2 5.5 6.7 7.0 5.8 2.9 Charter in costs 11.3 6.8 9.1 - 0.0 - Vessel operating expenses 32.8 60.3 70.2 78.8 90.9 48
Slide 25: Finance: Cash Flow Statement
FINANCE: CASH FLOW STATEMENT (US$'M) 2012 2013 2014 2015 2016 6 Months 2017 Net Income 30.5 42.2 87.7 98.1 44.6 5.0 Depreciation and amortisation 24.2 36.6 45.8 53.5 62.3 35.9 Drydocking payments - -2.9 -5.3 -11.6 -9.9 0.0 Non cash movements 1.8 2.9 3.8 5.9 4.9 5.4 Change in working capital -1.6 1.2
Slide 26: Table of Contents
TABLE OF CONTENTS BACKGROUND NAVIGATOR GAS MARKET FINANCIAL INFORMATION APPENDIX 26
Slide 27: Management
MANAGEMENT ■ Chairman of the Board since August 2006 David Butters ■ Former managing director at Lehman Brothers Inc, where he was employed for more than 37 years Chairman, President and Chief Executive Officer ■ Chairman of the board of directors of GulfMark Offshore, Inc. and a member of the board
Slide 28: Large Shareholders
LARGE SHAREHOLDERS Company Milestones Top 15 shareholders Name # shares ('000) Ownership 1997 Navigator Holdings was formed with the purpose of building and operating a fleet of five semi-refrigerated, 1 WL Ross & Co Ltd 21,864 39.4 % ethylene-capable gas carriers 2 David Butters 1,965 3.5 % 2000 5